From Mahart.

From Mahart.

We're Innovation, Money and Power Collie in Silicon Vallet NBN.

We're Innovation, Money and Power Collie in Silicon Vallet NBN.

This is Bloomberg Technology with Caroline Hyde.

This is Bloomberg Technology with Caroline Hyde.

And Ed Ludlove.

And Ed Ludlove.

Live from New York and San Francisco. This is Bloomberg Technology coming up. The US in weighs tougher trade curbs on chips for China stocks, tumble.

Live from New York and San Francisco. This is Bloomberg Technology coming up. The US in weighs tougher trade curbs on chips for China stocks, tumble.

Plusy Lommask moves SpaceX and X to Texas, and.

Plusy Lommask moves SpaceX and X to Texas, and.

Will Jdvans be good for business?

Will Jdvans be good for business?

We'll discuss, but first let's check in on these markets because we are having the worst day for the NASAC and the Nasdaq one hundred since October of twenty twenty three. We are pulled lower, in particular on the chip stocks of by three point nine percent.

We'll discuss, but first let's check in on these markets because we are having the worst day for the NASAC and the Nasdaq one hundred since October of twenty twenty three. We are pulled lower, in particular on the chip stocks of by three point nine percent.

The key is trade tensions.

The key is trade tensions.

The key is the Biden administration wanting to be limiting sales of key AI technolog and chips to China.

The key is the Biden administration wanting to be limiting sales of key AI technolog and chips to China.

And Ed you have got the details on the micro.

And Ed you have got the details on the micro.

Yeah, there's two names I'm looking at in particular. They are global names. We're absolutely right that it's the chip stocks in the US that are really weighing on markets. Tokyo Electron down seven point five percent overnight in Japan, biggest drop since April of this year, ASML, the Dutch chip equipment maker, down ten point eight percent, on track for its biggest drop since March of twenty twenty. The story that Bloomberg's reporting is that US officials are considering tougher curves on the access of the technology made by those companies to China buy Chinese companies. Let's get into it, Bloombazi and King joins us in San Francisco. Sarah Jacob joins us out of ansen Ian. I'm going to start with you. We're talking about something called the Foreign Direct Product Rule FDPR. Sources tell us this is something that US officials are considering using.

Yeah, there's two names I'm looking at in particular. They are global names. We're absolutely right that it's the chip stocks in the US that are really weighing on markets. Tokyo Electron down seven point five percent overnight in Japan, biggest drop since April of this year, ASML, the Dutch chip equipment maker, down ten point eight percent, on track for its biggest drop since March of twenty twenty. The story that Bloomberg's reporting is that US officials are considering tougher curves on the access of the technology made by those companies to China buy Chinese companies. Let's get into it, Bloombazi and King joins us in San Francisco. Sarah Jacob joins us out of ansen Ian. I'm going to start with you. We're talking about something called the Foreign Direct Product Rule FDPR. Sources tell us this is something that US officials are considering using.

What is it?

What is it?

Yeah, I think it's the way to look at it. Is is kind of the nuclear option in terms of trade action that can be taken. It's basically saying that if something had even the tiniest scintilla of US technology or US input, then the US can exert control over it. And it's borne out of frustration with the impact that we've had with the with what's being perceived as a sort of lagging reaction by the allies in terms of getting on board with the US, and in terms of that effect undermining.

Yeah, I think it's the way to look at it. Is is kind of the nuclear option in terms of trade action that can be taken. It's basically saying that if something had even the tiniest scintilla of US technology or US input, then the US can exert control over it. And it's borne out of frustration with the impact that we've had with the with what's being perceived as a sort of lagging reaction by the allies in terms of getting on board with the US, and in terms of that effect undermining.

Go to one of those allies now because ASML, Dutch company being hit hard. Their earnings were good, Sarah, but the impact on their Chinese sales likely to be tough.

Go to one of those allies now because ASML, Dutch company being hit hard. Their earnings were good, Sarah, but the impact on their Chinese sales likely to be tough.

Yes, that's right. Actually a SML reported second quarter bookings that beat estimates, and it's been talking about, you know how this is being driven by the artificial intelligence boom as we know, ASML has a monopoly and making machines that you know, produce the most advanced semiconductors. And this is also being driven by demand for very high power chips that are needed for AI applications. But certainly people looked to how much China accounted for in terms of the company's sales, and China count for nearly half of asm 's second quarter sales, trumains ASML's biggest market, and those sort of a sort of increases. These increasing exports also sort of you know, show that risks are wrapping up and because of diplomatic tensions possibly between the US and the Dutch government to push for more export curbs.

Yes, that's right. Actually a SML reported second quarter bookings that beat estimates, and it's been talking about, you know how this is being driven by the artificial intelligence boom as we know, ASML has a monopoly and making machines that you know, produce the most advanced semiconductors. And this is also being driven by demand for very high power chips that are needed for AI applications. But certainly people looked to how much China accounted for in terms of the company's sales, and China count for nearly half of asm 's second quarter sales, trumains ASML's biggest market, and those sort of a sort of increases. These increasing exports also sort of you know, show that risks are wrapping up and because of diplomatic tensions possibly between the US and the Dutch government to push for more export curbs.

And this is a diplomatic issue, but also this is one that is going to be impacting US companies. We know Micron, for example, significant sales to China. Is this just signaling yet more is to come when it comes to revenue.

And this is a diplomatic issue, but also this is one that is going to be impacting US companies. We know Micron, for example, significant sales to China. Is this just signaling yet more is to come when it comes to revenue.

Here, it's signaling I think frustration with the way that these curbs have been implemented and the impact that they've had, and a concern I think that the Chinese companies, these upstarts that were supposed to be held back perhaps haven't been. That's really what the tension is going on. And there's an exploration and a consideration of other measures and how we might exit increasing control. Fundamentally, we don't know what's going to happen. Obviously, this current administration is going towards the end of its term, so we'll see.

Here, it's signaling I think frustration with the way that these curbs have been implemented and the impact that they've had, and a concern I think that the Chinese companies, these upstarts that were supposed to be held back perhaps haven't been. That's really what the tension is going on. And there's an exploration and a consideration of other measures and how we might exit increasing control. Fundamentally, we don't know what's going to happen. Obviously, this current administration is going towards the end of its term, so we'll see.

And therein lies the point that's made in the Bloomberg reporting this moment in time, we're headed for a US presidential election. Earlier today, Bloomberg spoke to Virginia Governor Glenn Youngkin.

And therein lies the point that's made in the Bloomberg reporting this moment in time, we're headed for a US presidential election. Earlier today, Bloomberg spoke to Virginia Governor Glenn Youngkin.

Just listen to this real quick.

Just listen to this real quick.

China is not just a rival. They're trying to dominate the world, and they're trying to do it at the expense of the United States. We need to not only protect ourselves against China, but we need to fight back. And so the tariffs that President Trump imposed on China when he struck the first Chinese deal were critical in order to rebalance an unbalanced situation with China.

China is not just a rival. They're trying to dominate the world, and they're trying to do it at the expense of the United States. We need to not only protect ourselves against China, but we need to fight back. And so the tariffs that President Trump imposed on China when he struck the first Chinese deal were critical in order to rebalance an unbalanced situation with China.

The point raised by the Governor Sarah is that this approach by the Biden administration and officials might change depends on the outcome of the election later this year. In the context of China, what is it that the United States wants of its allies where you are in Amsterdam namingly the Dutch.

The point raised by the Governor Sarah is that this approach by the Biden administration and officials might change depends on the outcome of the election later this year. In the context of China, what is it that the United States wants of its allies where you are in Amsterdam namingly the Dutch.

Oh well, basically for what we're hearing, it's about, you know, extending those curves and potentially also looking at how they can limit the companies in particularly ASML's ability to service and you know, repair restricted gear that's already in China. As you know, also in the Netherlands we've had a new government and new cabinets in place. We haven't really heard from the new cabinet what their policy is going to be on this, but we'll have to wait and watch.

Oh well, basically for what we're hearing, it's about, you know, extending those curves and potentially also looking at how they can limit the companies in particularly ASML's ability to service and you know, repair restricted gear that's already in China. As you know, also in the Netherlands we've had a new government and new cabinets in place. We haven't really heard from the new cabinet what their policy is going to be on this, but we'll have to wait and watch.

And thank you Sarah Jacob of course in the Netherlands coming on on all things at ASML and ship equipment companies.

And thank you Sarah Jacob of course in the Netherlands coming on on all things at ASML and ship equipment companies.

I mean, let's just dwell on this for a moment, because I love the.

I mean, let's just dwell on this for a moment, because I love the.

Way that you bring in what the Governor Youngkin was saying about this is not something that can just be thought of as talking tough with Biden, knowing that the Trump administration likely to be pushing back on China hard. And indeed, there was this really important story out today on Business Week talking about how Taiwan is currently being something that needs to be considered more that actually had a big impact on certain US stocks today.

Way that you bring in what the Governor Youngkin was saying about this is not something that can just be thought of as talking tough with Biden, knowing that the Trump administration likely to be pushing back on China hard. And indeed, there was this really important story out today on Business Week talking about how Taiwan is currently being something that needs to be considered more that actually had a big impact on certain US stocks today.

Yeah.

Yeah.

I mean, the point made by former President Donald Trump in an interviewer BusinessWeek is that if he was come to power, he would look at Taiwan, Taiwan paying for protection, and a lot of that has been extrapolated out were showing Intel and Global foundry shares there being the exceptions to today's trading and moving to the upside. And there are some notes out there that are saying this is toa the only alternative that if President Trump came to power in November and took office next year, then an action to be taken on TSMC well in the context of global manufacturing and semiconductors Intel would be the only alternative for investors to back that kind of move. I don't know what you make of that, that sort of direct correlation, but that seems to be what the market suggesting with its trading this morning.

I mean, the point made by former President Donald Trump in an interviewer BusinessWeek is that if he was come to power, he would look at Taiwan, Taiwan paying for protection, and a lot of that has been extrapolated out were showing Intel and Global foundry shares there being the exceptions to today's trading and moving to the upside. And there are some notes out there that are saying this is toa the only alternative that if President Trump came to power in November and took office next year, then an action to be taken on TSMC well in the context of global manufacturing and semiconductors Intel would be the only alternative for investors to back that kind of move. I don't know what you make of that, that sort of direct correlation, but that seems to be what the market suggesting with its trading this morning.

And look, the direct correlation is so clear. Let's just bring up the stock charts. Let's just show how much Global Foundriies is outperforming the rest of the market today. Every single chip company in the socks is down apart from when you're looking in Global Foundries up more than nine percent. It was eclipsing ten percent earlier in the trade. Intel up two point eight percent. But it is interesting to think about how much this onshoring narrative has been one that the Biden administration has also been pushing. Yet more money being handed out at the moment when it comes to the Chips Act.

And look, the direct correlation is so clear. Let's just bring up the stock charts. Let's just show how much Global Foundriies is outperforming the rest of the market today. Every single chip company in the socks is down apart from when you're looking in Global Foundries up more than nine percent. It was eclipsing ten percent earlier in the trade. Intel up two point eight percent. But it is interesting to think about how much this onshoring narrative has been one that the Biden administration has also been pushing. Yet more money being handed out at the moment when it comes to the Chips Act.

We have seen the Bloomberg reporting, We've been through the market. Set's get an investors reaction for more. We're joined by Kim Forrest, Boca Capital Partners founder and CIO.

We have seen the Bloomberg reporting, We've been through the market. Set's get an investors reaction for more. We're joined by Kim Forrest, Boca Capital Partners founder and CIO.

I think let's start with.

I think let's start with.

That most recent point that you know. I think the market sees a more likely outcome that Trump becomes president and based on the BusinessWeek interview, he may look at Taiwan TSMC, may be impact and that may benefit the foundry or fab business of Intel. Oh, how would you assess that and play that, Kim.

That most recent point that you know. I think the market sees a more likely outcome that Trump becomes president and based on the BusinessWeek interview, he may look at Taiwan TSMC, may be impact and that may benefit the foundry or fab business of Intel. Oh, how would you assess that and play that, Kim.

Well, I think you know, with the Biden administration getting tougher, I'm thinking this is a toss up. This is an issue for the next four years, regardless of who comes into power. And I think that on shoring not just in the US but also over in other parts of the world like the EU, I think that is more of a longer term goal because we all kind of see the error in our ways of having one geography and even let's forget about that, it is in a very seismically active area and they get a lot of you know, disruption because of earthquakes, and it's near, you know, a rising China. It's sixty eight miles from mainland China, so you know there's threats there. But just the basics of having one place where all of the chin that are the highest technology are made is really kind of ridiculous. I just as a risk remediator in my business, I don't see how we got here, but here we are.

Well, I think you know, with the Biden administration getting tougher, I'm thinking this is a toss up. This is an issue for the next four years, regardless of who comes into power. And I think that on shoring not just in the US but also over in other parts of the world like the EU, I think that is more of a longer term goal because we all kind of see the error in our ways of having one geography and even let's forget about that, it is in a very seismically active area and they get a lot of you know, disruption because of earthquakes, and it's near, you know, a rising China. It's sixty eight miles from mainland China, so you know there's threats there. But just the basics of having one place where all of the chin that are the highest technology are made is really kind of ridiculous. I just as a risk remediator in my business, I don't see how we got here, but here we are.

Okay.

Okay.

So has that been changing the way in which you think people should be investing in these names? TSMC has been making the most of the Chips Act here in the United States, has been trying to expand. Admittedly, there's been hiccups and expansion struggles when you think of Arizona. But these are companies that are looking to on shore to be closer to where their client base is. How much should it be knocking the capitalization. I'm looking at TSMC, the depository receipts having their worst day since October twenty twenty two today.

So has that been changing the way in which you think people should be investing in these names? TSMC has been making the most of the Chips Act here in the United States, has been trying to expand. Admittedly, there's been hiccups and expansion struggles when you think of Arizona. But these are companies that are looking to on shore to be closer to where their client base is. How much should it be knocking the capitalization. I'm looking at TSMC, the depository receipts having their worst day since October twenty twenty two today.

Kim, Sure, well, I think they're trying to move in that direction, but it's slow, as you noted, and it's just the nature of the beast. These are not factories that can be thrown up overnight. It takes a very long time for even the physical building to go in, let alone the equipment, and then that ties into ASML that they too are playing into this. You can only make this exotic equipment as fast as you can make it, and that's part of the dilemma here is how quickly can people move And the answer is not very fast. And I think that's why stocks are trading lower because they see, if you know, the US puts up gates to sell this equipment, it's really going to affect these companies and the turnaround is not quick.

Kim, Sure, well, I think they're trying to move in that direction, but it's slow, as you noted, and it's just the nature of the beast. These are not factories that can be thrown up overnight. It takes a very long time for even the physical building to go in, let alone the equipment, and then that ties into ASML that they too are playing into this. You can only make this exotic equipment as fast as you can make it, and that's part of the dilemma here is how quickly can people move And the answer is not very fast. And I think that's why stocks are trading lower because they see, if you know, the US puts up gates to sell this equipment, it's really going to affect these companies and the turnaround is not quick.

Kim.

Kim.

On that last observation, I'm looking at the NASDAQ one hundred. The biggest percentage decline is of course oral chip makers. If we close down two point three percent, that's the biggest drop for the NASZAK one hundred.

On that last observation, I'm looking at the NASDAQ one hundred. The biggest percentage decline is of course oral chip makers. If we close down two point three percent, that's the biggest drop for the NASZAK one hundred.

Since October of last year, things have changed quite quickly.

Since October of last year, things have changed quite quickly.

This was a market until last night was looking at the election factor and was trading in a positive manner, and now things have changed.

This was a market until last night was looking at the election factor and was trading in a positive manner, and now things have changed.

Why why this sudden anxiety do you think?

Why why this sudden anxiety do you think?

Why do you think the geopolitical focus on semiconductors at the very smallest equation. We've all been told money makes the world go round. Well, semiconductors makes the money go round, and you know they're the under underpinning of every business. Now energy is important, but semiconductors are now equally important. And the more exotic the chips are for AI, which everyone seems to believe that that is the thing that will bring productivity and is the next big thing. It is a major focus. And do we let one area of the world be the only maker of it? I'd say no, we cannot. And this is all all countries, not just the.

Why do you think the geopolitical focus on semiconductors at the very smallest equation. We've all been told money makes the world go round. Well, semiconductors makes the money go round, and you know they're the under underpinning of every business. Now energy is important, but semiconductors are now equally important. And the more exotic the chips are for AI, which everyone seems to believe that that is the thing that will bring productivity and is the next big thing. It is a major focus. And do we let one area of the world be the only maker of it? I'd say no, we cannot. And this is all all countries, not just the.

US, kim forest, the global perspective.

US, kim forest, the global perspective.

Boca Capital Partners founder in Cio brilliant to have you on the show.

Boca Capital Partners founder in Cio brilliant to have you on the show.

Thank you coming up.

Thank you coming up.

Look Elo Musk's saying that X and SpaceX are going to change their headquarters.

Look Elo Musk's saying that X and SpaceX are going to change their headquarters.

I'm going to Texas. We'll have all the tells next. This is Bloomberg Technology.

I'm going to Texas. We'll have all the tells next. This is Bloomberg Technology.

Signed for Talking Tech and First Up.

Signed for Talking Tech and First Up.

Global Wafers wins four hundred million dollars from the US. The Taiwan silicon wafer producer was awarded funds through the Chips and Science actors. The company radies for projects in Texas and Missouri. Global Wafer says it plans to invest a total of four billion dollars into the initiative, creating twenty five hundred jobs plus. Revolute is in talks with Tiger Global to lead an upcoming share sale. Revolute CEO Francesca Kalisi spoke earlier on Bloomberg about its prospects.

Global Wafers wins four hundred million dollars from the US. The Taiwan silicon wafer producer was awarded funds through the Chips and Science actors. The company radies for projects in Texas and Missouri. Global Wafer says it plans to invest a total of four billion dollars into the initiative, creating twenty five hundred jobs plus. Revolute is in talks with Tiger Global to lead an upcoming share sale. Revolute CEO Francesca Kalisi spoke earlier on Bloomberg about its prospects.

These is are bought confidences.

These is are bought confidences.

Every time that new investor comes to board is a big sign, and especially when there is also impact evaluation. Right, So this is a good measure moment or truth for all of us.

Every time that new investor comes to board is a big sign, and especially when there is also impact evaluation. Right, So this is a good measure moment or truth for all of us.

Tiger's involvement would be leading a secondary offering. It can now value Revolute of more than forty billion dollars and shares of git lab arising today the outfitt Back software makers said to be exploring a sale after attracting interest from potential bidders. That's according to a report from Reuters. The San Francisco based company is working with investment bankers and has attracted peers like data Dog Carrot.

Tiger's involvement would be leading a secondary offering. It can now value Revolute of more than forty billion dollars and shares of git lab arising today the outfitt Back software makers said to be exploring a sale after attracting interest from potential bidders. That's according to a report from Reuters. The San Francisco based company is working with investment bankers and has attracted peers like data Dog Carrot.

Let's just talk about Elon Musk and what he's just been saying on X when it comes to a couple of his company's ed the headquarters of X and SpaceX will both relocate to Texas with a billionaire citing frustration over laws in California, where the companies are currently based. Let's break all of this down, and there's Kurt Wagner's with us, Max Chafkin. Kurt, I start with you as someone who's the lean byline on this story. The frustration being a new law recently passing California to do with transgender children in public schools politics affecting Elon Musk's view on where to base his companies.

Let's just talk about Elon Musk and what he's just been saying on X when it comes to a couple of his company's ed the headquarters of X and SpaceX will both relocate to Texas with a billionaire citing frustration over laws in California, where the companies are currently based. Let's break all of this down, and there's Kurt Wagner's with us, Max Chafkin. Kurt, I start with you as someone who's the lean byline on this story. The frustration being a new law recently passing California to do with transgender children in public schools politics affecting Elon Musk's view on where to base his companies.

It seems, yeah, absolutely, and I think this is, you know, a regression that we've seen for the last couple of years, but especially just the last couple of weeks, right, I mean he has now come out publicly in support of former President Donald Trump and the upcoming election he's donating to his campaign. We've seen Elon Musk complain about the laws in California, the Liberals in California for years, and so, you know, while it feels like a bit of a reactive decision right to see this new law and suddenly say we're going to move these companies out of the state, I think this has been a long time coming. In anyone who's followed Elon closely could see that this was building and building.

It seems, yeah, absolutely, and I think this is, you know, a regression that we've seen for the last couple of years, but especially just the last couple of weeks, right, I mean he has now come out publicly in support of former President Donald Trump and the upcoming election he's donating to his campaign. We've seen Elon Musk complain about the laws in California, the Liberals in California for years, and so, you know, while it feels like a bit of a reactive decision right to see this new law and suddenly say we're going to move these companies out of the state, I think this has been a long time coming. In anyone who's followed Elon closely could see that this was building and building.

Max, I think it's really important that the four of us talk about the technology and company impact this is going to have. SpaceX is critically important as a leader in commercial space. But you've been focused on Elon's politics as well. In the Elon in pod, I mean, you will have seen the back and forth between Governor Newsome, who shared an image of a Trump true social post, the timing of which we can debate it must have been the photo taken during Trump's former period in the White House.

Max, I think it's really important that the four of us talk about the technology and company impact this is going to have. SpaceX is critically important as a leader in commercial space. But you've been focused on Elon's politics as well. In the Elon in pod, I mean, you will have seen the back and forth between Governor Newsome, who shared an image of a Trump true social post, the timing of which we can debate it must have been the photo taken during Trump's former period in the White House.

But the point being.

But the point being.

That that Musk here has changed his politics and it has impact to his companies, has impact at a macro level.

That that Musk here has changed his politics and it has impact to his companies, has impact at a macro level.

Yeah, I mean, you know.

Yeah, I mean, you know.

Elon Musk identifying himself as a you know, supporter of the former president and also likely a major donor, maybe the biggest donor. You know, he's he's definitely in the middle of this debate, and we're seeing you know, Gavin Newsom effectively as a surrogate for for for the Biden administration, you know, doing what you would expect from a surrogate, which is to sort of point out the obvious, uh, the obvious apparent hypocrisy of being at one point opposed to president former president and now being an enthusiastic supporter.

Elon Musk identifying himself as a you know, supporter of the former president and also likely a major donor, maybe the biggest donor. You know, he's he's definitely in the middle of this debate, and we're seeing you know, Gavin Newsom effectively as a surrogate for for for the Biden administration, you know, doing what you would expect from a surrogate, which is to sort of point out the obvious, uh, the obvious apparent hypocrisy of being at one point opposed to president former president and now being an enthusiastic supporter.

And as Kurt said, long time coming.

And as Kurt said, long time coming.

You know, Elon Musk himself already lives in Texas, so it's not hugely surprising.

You know, Elon Musk himself already lives in Texas, so it's not hugely surprising.

That he's doing this.

That he's doing this.

It does have the feel of a political stunt more than anything.

It does have the feel of a political stunt more than anything.

Not hugely surprising, but important for California and its technology industry. Right there with me on SpaceX, they have around thirteen thousand employees, many of them are in Hawthorne. Falcon nine is built in Hawthorne. They stick it on truck and trailer and ship it to Florida.

Not hugely surprising, but important for California and its technology industry. Right there with me on SpaceX, they have around thirteen thousand employees, many of them are in Hawthorne. Falcon nine is built in Hawthorne. They stick it on truck and trailer and ship it to Florida.

And then there's X.

And then there's X.

I think that that company was creeping out of the building on Market Street. Anyway, Yeah, but we're talking about the footprint of two companies leaving the state.

I think that that company was creeping out of the building on Market Street. Anyway, Yeah, but we're talking about the footprint of two companies leaving the state.

Yeah, I mean, I don't think there's any way to sugarcoat this in terms of what it looks like for California.

Yeah, I mean, I don't think there's any way to sugarcoat this in terms of what it looks like for California.

Right, It certainly looks bad.

Right, It certainly looks bad.

It looks like you're taking the best, the brightest, the smartest technologists in the industry and moving them somewhere else. And so there is definitely an optical issue here. Now, the logistics of this are very important because while Elon has also moved Tesla to Texas several years ago, there's still a huge office here in Palo Alto, as you know, for Tesla, And so the question is, are these employees actually going to be leaving California, Are the jobs literally leaving California or is this more of a logistics thing of rebranding the company there now?

It looks like you're taking the best, the brightest, the smartest technologists in the industry and moving them somewhere else. And so there is definitely an optical issue here. Now, the logistics of this are very important because while Elon has also moved Tesla to Texas several years ago, there's still a huge office here in Palo Alto, as you know, for Tesla, And so the question is, are these employees actually going to be leaving California, Are the jobs literally leaving California or is this more of a logistics thing of rebranding the company there now?

Max, Ultimately, this is quite a personal issue feel or musk this current new law coming in in California. One of his eldest children, as the Sighter than the Story, went to court the day after they turned eighteen and twenty twenty two and changed their name, citing gender identity and the fact that they no longer live or wish to be related to my biological father in any way, shape or form. This is personal, but it also makes the consumer feel personally about some of the moves that Elon Musk is taking. And ultimately, from your Elon Inc. Podcasting viewpoint, how much is going to impact the businesses that Elon's getting ever more political here?

Max, Ultimately, this is quite a personal issue feel or musk this current new law coming in in California. One of his eldest children, as the Sighter than the Story, went to court the day after they turned eighteen and twenty twenty two and changed their name, citing gender identity and the fact that they no longer live or wish to be related to my biological father in any way, shape or form. This is personal, but it also makes the consumer feel personally about some of the moves that Elon Musk is taking. And ultimately, from your Elon Inc. Podcasting viewpoint, how much is going to impact the businesses that Elon's getting ever more political here?

Well, I don't think this particular move is going to have a huge impact either on the way consumers feel about you know, Elon Musk, or about you know, even the way that his employees feel. I mean, as Kurt says, it's not clear many are even going.

Well, I don't think this particular move is going to have a huge impact either on the way consumers feel about you know, Elon Musk, or about you know, even the way that his employees feel. I mean, as Kurt says, it's not clear many are even going.

To have to move. It is the latest sign.

To have to move. It is the latest sign.

In a series of signs of Elon Musk becoming this, you know, very polarizing figure, and that is a challenge for especially for Tesla Right, which has this enormous base of customers, many of whom live in suburbs, many of whom are not hardcore Donald Trump supporters. So so he has but he's sort of made his bet on this over the last few years. So in a way, I don't think it's going to have a huge impact. It's more just a symptom of this ongoing, you know, the ongoing politics of being Elon Musk.

In a series of signs of Elon Musk becoming this, you know, very polarizing figure, and that is a challenge for especially for Tesla Right, which has this enormous base of customers, many of whom live in suburbs, many of whom are not hardcore Donald Trump supporters. So so he has but he's sort of made his bet on this over the last few years. So in a way, I don't think it's going to have a huge impact. It's more just a symptom of this ongoing, you know, the ongoing politics of being Elon Musk.

Poomber, Kurt Wagner here in SF Max Chafkin, thank you both.

Poomber, Kurt Wagner here in SF Max Chafkin, thank you both.

Today it's our AI in Action segment and we're joined by tech Wolf. It's a company focusing on utilizing artificial intelligence in the world of recruiting, actually in retention as a tool to manage talent. The company also recently closing a forty two million dollar Series B. We want to bring in Michael Warner, who's Techwolf co founder and COO. Michael Howe is the more targeted large language models that you're developing, helping companies identify the talent they already have.

Today it's our AI in Action segment and we're joined by tech Wolf. It's a company focusing on utilizing artificial intelligence in the world of recruiting, actually in retention as a tool to manage talent. The company also recently closing a forty two million dollar Series B. We want to bring in Michael Warner, who's Techwolf co founder and COO. Michael Howe is the more targeted large language models that you're developing, helping companies identify the talent they already have.

Yeah, so we use artificial intelligence to help employees flourish that work, but also employers to help employers make better, smarter workforce decisions, who to train, who to hire, who to develop. So instead of saying we need to hire a thousand AI engineers, our AI can come in and say no, actually you only need to hire five hundreds, and the other five hundred can be redeployed, reskill trained inside the company And essentially that can save the business millions in direct requiitment costs, millions in sovereigns fees and millions in anutrition, and so today we have about two million skill profiles for employees. We work together with the most innovative HR leaders on the planet. I'd say HIBC, GFADP ericson United Airlines, MetLife. We're really making all the difference here with AI Michael.

Yeah, so we use artificial intelligence to help employees flourish that work, but also employers to help employers make better, smarter workforce decisions, who to train, who to hire, who to develop. So instead of saying we need to hire a thousand AI engineers, our AI can come in and say no, actually you only need to hire five hundreds, and the other five hundred can be redeployed, reskill trained inside the company And essentially that can save the business millions in direct requiitment costs, millions in sovereigns fees and millions in anutrition, and so today we have about two million skill profiles for employees. We work together with the most innovative HR leaders on the planet. I'd say HIBC, GFADP ericson United Airlines, MetLife. We're really making all the difference here with AI Michael.

Where in the hiring process does this come in? Right?

Where in the hiring process does this come in? Right?

There's already sort of algorithmic filtering of cvs and then you basically in the first line have HR people going through piles before the hiring manager gets it.

There's already sort of algorithmic filtering of cvs and then you basically in the first line have HR people going through piles before the hiring manager gets it.

Where do you come in?

Where do you come in?

Yeah, and it's good to take a step back. Skill management has been around since the eighties. Trying to understand the skills of people inside the company has been around for quite a long time. So we come in big company, fifty thousand, one hundred thousand employees, and the first thing we do is essentially create data, skilled data for everybody. And that's the first we're the first company that can reliably do this, and then the second step is actually using that data to make better decisions. So better data, we can typically see that there's a twenty five percent skills mismatch. The twenty five percent of employees have not the skills to perform in a job. We can demonstrate that seventy five percent of vacancies can be filled with internal tables. So it's a completely new way of looking at the workforce. More than specifically focusing on improvement, it's a data platform for HR.

Yeah, and it's good to take a step back. Skill management has been around since the eighties. Trying to understand the skills of people inside the company has been around for quite a long time. So we come in big company, fifty thousand, one hundred thousand employees, and the first thing we do is essentially create data, skilled data for everybody. And that's the first we're the first company that can reliably do this, and then the second step is actually using that data to make better decisions. So better data, we can typically see that there's a twenty five percent skills mismatch. The twenty five percent of employees have not the skills to perform in a job. We can demonstrate that seventy five percent of vacancies can be filled with internal tables. So it's a completely new way of looking at the workforce. More than specifically focusing on improvement, it's a data platform for HR.

Michael's interesting as you say, yeah, what's talent identification goes back to the eighties. There are some big HR players out there, and funnily enough, some of them are actually can you you've got some strategic investment Felix Capital leading a series BB it's SAP Service now Workday what's your outlook?

Michael's interesting as you say, yeah, what's talent identification goes back to the eighties. There are some big HR players out there, and funnily enough, some of them are actually can you you've got some strategic investment Felix Capital leading a series BB it's SAP Service now Workday what's your outlook?

Do you remain independent?

Do you remain independent?

Of course, and when we talked about the round composition, we took a step back and we asked herself the question what is needed to build a European generational AAI company. And then from like capability lands like three big investor groups came up, the HR and HR tech investor that we just mentioned. It's the first time work Day SAPs Service Now are investing together. But also Felix like potentially giving us the opportunity to learn from people who have skilled really big businesses before, and then Leslie AI and essentially ensuring that we have the best and brightest AI brains on our on our cap label. So we have people from deep Mind adjoining the AI leader from Hugging Clase and Meta to ensure that we can keep our AI leads in this space.

Of course, and when we talked about the round composition, we took a step back and we asked herself the question what is needed to build a European generational AAI company. And then from like capability lands like three big investor groups came up, the HR and HR tech investor that we just mentioned. It's the first time work Day SAPs Service Now are investing together. But also Felix like potentially giving us the opportunity to learn from people who have skilled really big businesses before, and then Leslie AI and essentially ensuring that we have the best and brightest AI brains on our on our cap label. So we have people from deep Mind adjoining the AI leader from Hugging Clase and Meta to ensure that we can keep our AI leads in this space.

Michael Wano, Tech, co founder of tech Wolf, thank you so much for your time.

Michael Wano, Tech, co founder of tech Wolf, thank you so much for your time.

On startups and technology.

On startups and technology.

We are certainly among the best experts in the world.

We are certainly among the best experts in the world.

We think.

We think.

Donald Trump is a better choice sen Joe Biogen on these issues.

Donald Trump is a better choice sen Joe Biogen on these issues.

That was Ben Horowitz, co founder of the VC firm Andreessen Horowitz, explaining why he and co founder Mark in Breeson are now backing Donald Trump. The famous VC duo is planning to donate a significant amount to his campaign, according to a Bloomberg source, though the donations will be personal contributions from the two men, not from the firm itself. I want to bring in Bloomberg's Zett, Chapman and Lazette. You've written brilliantly in the last twenty four to forty eight hours about essentially Silicon Valley's reaction to the events of the past week, the RNC and JD vance being Trump's VP pick. Just summarize the reporting for us, please.

That was Ben Horowitz, co founder of the VC firm Andreessen Horowitz, explaining why he and co founder Mark in Breeson are now backing Donald Trump. The famous VC duo is planning to donate a significant amount to his campaign, according to a Bloomberg source, though the donations will be personal contributions from the two men, not from the firm itself. I want to bring in Bloomberg's Zett, Chapman and Lazette. You've written brilliantly in the last twenty four to forty eight hours about essentially Silicon Valley's reaction to the events of the past week, the RNC and JD vance being Trump's VP pick. Just summarize the reporting for us, please.

Right, So, there has been a huge pouring of support for Trump and his VP nominee. Vance not only has Elon Musk and Mark Andresen and then Horowitz as well as David Sachs, Doug Leoni, and Sean maguire from Sequoia Capital. All of these tech and venture capital big name, very prominent people here in Silicon Valley have all lined up to support Trump in recent weeks, with gaining momentum as more and more seem to like what he has to say about tech policy. Uh Specifically, they.

Right, So, there has been a huge pouring of support for Trump and his VP nominee. Vance not only has Elon Musk and Mark Andresen and then Horowitz as well as David Sachs, Doug Leoni, and Sean maguire from Sequoia Capital. All of these tech and venture capital big name, very prominent people here in Silicon Valley have all lined up to support Trump in recent weeks, with gaining momentum as more and more seem to like what he has to say about tech policy. Uh Specifically, they.

Realize in some ways this might be controversial for those that are in their family. That's certainly what Ben Howtz spoke to that people with then their company Lizette, to take such an openly political stance. But what is in it for small tech as they call it, because from what we understand, well, the VP pick doesn't like big tech munch.

Realize in some ways this might be controversial for those that are in their family. That's certainly what Ben Howtz spoke to that people with then their company Lizette, to take such an openly political stance. But what is in it for small tech as they call it, because from what we understand, well, the VP pick doesn't like big tech munch.

Right, That's right, so on small tech, which is what Mark Andrewsen and Ben Horowitz they call it their little Tech agenda specifically for startups. There's a couple of areas that they're really hoping to bend the ears of Trump and Vance on, including potentially opening open sourcing AI, loosening crypto regulation, and possibly taking another look at the FTC and the anti trust regulations that we've seen come down, and one of the reasons for that is because although it does target big tech companies by preventing them from acquiring smaller startups, it closes down that path as an exit for them and they can only i PO, which hasn't been a very strong It hasn't been a strong in recent years.

Right, That's right, so on small tech, which is what Mark Andrewsen and Ben Horowitz they call it their little Tech agenda specifically for startups. There's a couple of areas that they're really hoping to bend the ears of Trump and Vance on, including potentially opening open sourcing AI, loosening crypto regulation, and possibly taking another look at the FTC and the anti trust regulations that we've seen come down, and one of the reasons for that is because although it does target big tech companies by preventing them from acquiring smaller startups, it closes down that path as an exit for them and they can only i PO, which hasn't been a very strong It hasn't been a strong in recent years.

Lazette.

Lazette.

We made the point on the show, and we can illustrate it again with a visual representation of who's come out and spoil of Trump. But he it is many or some of Silicon Valley. It's not all of Silicon Valley. So what have you learned about any remaining support in that industry for the Democratic Party or even those that have changed position along the way.

We made the point on the show, and we can illustrate it again with a visual representation of who's come out and spoil of Trump. But he it is many or some of Silicon Valley. It's not all of Silicon Valley. So what have you learned about any remaining support in that industry for the Democratic Party or even those that have changed position along the way.

That's an excellent point ed, And again, the reason why this is so significant on some ways is because it's been a major departure for many people that have longtime voted Democrat. But to your point, it's certainly not all of Silicon Valley. These are some very prominent names that are supporting him, but there's still a large contingent of Democratic voters backing Biden. Certainly, you know is Steve Bomber, Maurissa Meyer, quite a few others have traditionally supported Democrats, and so you know, the conversation is still very mixed. It's certainly not all tech, and it's certainly not all of Silicon Valley well.

That's an excellent point ed, And again, the reason why this is so significant on some ways is because it's been a major departure for many people that have longtime voted Democrat. But to your point, it's certainly not all of Silicon Valley. These are some very prominent names that are supporting him, but there's still a large contingent of Democratic voters backing Biden. Certainly, you know is Steve Bomber, Maurissa Meyer, quite a few others have traditionally supported Democrats, and so you know, the conversation is still very mixed. It's certainly not all tech, and it's certainly not all of Silicon Valley well.

Bardy, Lizette, Is this likely to get louder as we go towards November? Is it just that this is a moment in time where people lay their cards out and get on board the rest of those that they work with, and indeed the portfolio companies understanding their stand I.

Bardy, Lizette, Is this likely to get louder as we go towards November? Is it just that this is a moment in time where people lay their cards out and get on board the rest of those that they work with, and indeed the portfolio companies understanding their stand I.

Think it will get increasingly louder, more raucous, and potentially more divisive if you look at some of the beef's happening right now playing out on the X platform, because campaigns and gain steam as we get closer to the election date. So I don't anticipate this ratcheting down anytime soon. Doesn't mean it won't stay civil. We can, but we will look ahead to see how things will progress.

Think it will get increasingly louder, more raucous, and potentially more divisive if you look at some of the beef's happening right now playing out on the X platform, because campaigns and gain steam as we get closer to the election date. So I don't anticipate this ratcheting down anytime soon. Doesn't mean it won't stay civil. We can, but we will look ahead to see how things will progress.

He is hoping on that civility, Lazette, Chapman, brilliant to have you on, Thank you very much. Indeed, we were just talking about some of the beef going on on social media. But let's just talk about how artificial intelligence becomes ever more advanced, there's this greater risk of the moment for the technology to be used maliciously, particularly on social media. The rise in deep fakes, manipulated media. It's proven particularly harmful during this election cycle. Nowlifornia based startup get Real Labs build tools to analyze in combat media manipulation. I want to talk about how important the role is right now and Hanney farred for more and you've basically been building this business alongside academia to try and target what could be a real election risk, but just ongoing risk.

He is hoping on that civility, Lazette, Chapman, brilliant to have you on, Thank you very much. Indeed, we were just talking about some of the beef going on on social media. But let's just talk about how artificial intelligence becomes ever more advanced, there's this greater risk of the moment for the technology to be used maliciously, particularly on social media. The rise in deep fakes, manipulated media. It's proven particularly harmful during this election cycle. Nowlifornia based startup get Real Labs build tools to analyze in combat media manipulation. I want to talk about how important the role is right now and Hanney farred for more and you've basically been building this business alongside academia to try and target what could be a real election risk, but just ongoing risk.

Honey, how much do you think that this is.

Honey, how much do you think that this is.

Currently something we need to be understanding and worrying about in the current context.

Currently something we need to be understanding and worrying about in the current context.

Yeah.

Yeah.

Yeah, it's hard to look at the last few years and generative AI and deep faces and think this is not a risk to us as individuals in terms of fraud, to institutions in terms of fraud, and in terms of democracies. In terms of disan misinformation, we are seeing it here in the US, We have seen it Europe, we are seeing in India, we are seeing it around the world that disin misinformation is being powered now by the latest trends in deep fates, and what we are trying to do is think really hard about how we can detect and stop that type of thread vector.

Yeah, it's hard to look at the last few years and generative AI and deep faces and think this is not a risk to us as individuals in terms of fraud, to institutions in terms of fraud, and in terms of democracies. In terms of disan misinformation, we are seeing it here in the US, We have seen it Europe, we are seeing in India, we are seeing it around the world that disin misinformation is being powered now by the latest trends in deep fates, and what we are trying to do is think really hard about how we can detect and stop that type of thread vector.

Professor fride As already.

Professor fride As already.

Lets know about your role at the University of California, Berkeley, the work you're doing there. But for me, it's a technology story in the sense that you have a new tool to combat an issue.

Lets know about your role at the University of California, Berkeley, the work you're doing there. But for me, it's a technology story in the sense that you have a new tool to combat an issue.

And at the same time, the.

And at the same time, the.

Proliferation of applications, generative AI applications that create that content is also on the right. Do you actually just have a phone up some of those companies and say let's work together.

Proliferation of applications, generative AI applications that create that content is also on the right. Do you actually just have a phone up some of those companies and say let's work together.

Yes, in fact we do.

Yes, in fact we do.

In fact, you can't work in cybersecurity if you're not talking to the other side of the aisle. Right, you can't do defense if you don't understand O offense. And the good news is I think that the open eyes and the mid journeys and the stabilities are not bad actors. I think they're generating technology that has good uses and bad uses. So I think they're generally incentivized to work with us to create defenses. We take all the advantage of the technology and we mitigate some of the risks, and we have to do that together.

In fact, you can't work in cybersecurity if you're not talking to the other side of the aisle. Right, you can't do defense if you don't understand O offense. And the good news is I think that the open eyes and the mid journeys and the stabilities are not bad actors. I think they're generating technology that has good uses and bad uses. So I think they're generally incentivized to work with us to create defenses. We take all the advantage of the technology and we mitigate some of the risks, and we have to do that together.

If we just took the presidential election as a case study. How would your platform and technology work if there are a video a deep fake circulating good.

If we just took the presidential election as a case study. How would your platform and technology work if there are a video a deep fake circulating good.

So what we want to be able to do is any time an image, an audio, or video breaks. And you saw that in fact mediating, which is interesting exactly, and you saw it this weekend at the shooting, there was immediately fake images and fake videos coming out, mudding the landscape. So we work with reporters, we work with fact checkers, we work with organizations, we work with campaigns. As soon as something comes out, you send it to us. We run through a battery of tests and we try to find as much information as we can so that you can make decisions downstream.

So what we want to be able to do is any time an image, an audio, or video breaks. And you saw that in fact mediating, which is interesting exactly, and you saw it this weekend at the shooting, there was immediately fake images and fake videos coming out, mudding the landscape. So we work with reporters, we work with fact checkers, we work with organizations, we work with campaigns. As soon as something comes out, you send it to us. We run through a battery of tests and we try to find as much information as we can so that you can make decisions downstream.

Talk about that decision that a consumer has right now. Have we all become some numb that well, we wonder whether or anything is real?

Talk about that decision that a consumer has right now. Have we all become some numb that well, we wonder whether or anything is real?

Now?

Now?

Sure, that's always the fear.

Sure, that's always the fear.

So what I like to tell people is what we do I get real is necessary, but not necessarily sufficient. So the first thing we have to be able to do is tell you what is real and what is fake. There is another battle now that we have to get out of our echo chambers. We have to stop hating the other side of the aisle so much because if we can't hear facts, I don't know how we move forward as a democracy and as a society.

So what I like to tell people is what we do I get real is necessary, but not necessarily sufficient. So the first thing we have to be able to do is tell you what is real and what is fake. There is another battle now that we have to get out of our echo chambers. We have to stop hating the other side of the aisle so much because if we can't hear facts, I don't know how we move forward as a democracy and as a society.

I just want to know a bit more about get Real Labs and how you came to be inc over the past couple of years with Ballistic Ventures, and you see Berkeley under yourself really incubating this business.

I just want to know a bit more about get Real Labs and how you came to be inc over the past couple of years with Ballistic Ventures, and you see Berkeley under yourself really incubating this business.

What does it look like now? How many people who you are tracting?

What does it look like now? How many people who you are tracting?

Great, it's a great question.

Great, it's a great question.

So first of all, I started working in this field twenty five years ago, so this is for me as a long academic journey. And about two years ago I partnered with the folks at Ballistic Ventures is Ted Schlin and Rogers Thornton. They incubated us. Our head count is thirty right now and we will quickly be forty to fifty by the end of the year. We have a product, we are starting to work with customers, and we very much expect to have technology out before the election. Per the point you were just making.

So first of all, I started working in this field twenty five years ago, so this is for me as a long academic journey. And about two years ago I partnered with the folks at Ballistic Ventures is Ted Schlin and Rogers Thornton. They incubated us. Our head count is thirty right now and we will quickly be forty to fifty by the end of the year. We have a product, we are starting to work with customers, and we very much expect to have technology out before the election. Per the point you were just making.

At Professor Haney Furry, co founder get Real Labs, really interesting and timely conversation.

At Professor Haney Furry, co founder get Real Labs, really interesting and timely conversation.

Thank you, Caroline.

Thank you, Caroline.

We're just going to get back to the broader markets right now because they're under pressure.

We're just going to get back to the broader markets right now because they're under pressure.

We're being hit hard.

We're being hit hard.

Now's that two point three percent lower worst dates in so October, and no, I'll put it into context. We're only trading the lowst since July the first, but now more than two percent dip is a big and we haven't seen it for a long time. We're being dragged down by the chip makers, off by four percent on the socks on the Chip index. More broadly, why this concern that we'll see yet ramped up Biden focus on China accessing chip manufacturing, but also that manufacturing equipment coming from Europe, from over in Asia as well. In video off by more than five percent for a nearly three trillion dollar company. That's a big move. ASML off by an eleven percent move even though they had strong earnings. They are really exposed to China. Intel, though it's up one weet eight percent. An incredibly important BusinessWeek story coming an interview with former President Trump saying, look, Taiwan, should we be protecting it. We're worried about Taiwan ultimately helping Intel. We've got a lot coming up head.

Now's that two point three percent lower worst dates in so October, and no, I'll put it into context. We're only trading the lowst since July the first, but now more than two percent dip is a big and we haven't seen it for a long time. We're being dragged down by the chip makers, off by four percent on the socks on the Chip index. More broadly, why this concern that we'll see yet ramped up Biden focus on China accessing chip manufacturing, but also that manufacturing equipment coming from Europe, from over in Asia as well. In video off by more than five percent for a nearly three trillion dollar company. That's a big move. ASML off by an eleven percent move even though they had strong earnings. They are really exposed to China. Intel, though it's up one weet eight percent. An incredibly important BusinessWeek story coming an interview with former President Trump saying, look, Taiwan, should we be protecting it. We're worried about Taiwan ultimately helping Intel. We've got a lot coming up head.

Yeah, and to your point made earlier, many of these indicies at their lowest since early July. But they're big drops in the moment. Coming up, we're to be joined by Menlo Venture's partner Matt Murphy on the firm's exclusive partnership with Anthropic and their new fund.

Yeah, and to your point made earlier, many of these indicies at their lowest since early July. But they're big drops in the moment. Coming up, we're to be joined by Menlo Venture's partner Matt Murphy on the firm's exclusive partnership with Anthropic and their new fund.

That's next. This is Spoonberg Technology.

That's next. This is Spoonberg Technology.

Melo Ventures just announced the Anthology Fund, a one hundred million dollar initiative created through an exclusive partnership with AI company Anthropic. The goal to partner with innovative founders to build unique AI first applications and infrastructure solutions that leverage Anthropics technology and its AI models. Are going to bring in Meno Ventures partner Matt Murphy for more on this mechanically.

Melo Ventures just announced the Anthology Fund, a one hundred million dollar initiative created through an exclusive partnership with AI company Anthropic. The goal to partner with innovative founders to build unique AI first applications and infrastructure solutions that leverage Anthropics technology and its AI models. Are going to bring in Meno Ventures partner Matt Murphy for more on this mechanically.

How does it work?

How does it work?

So you see something on your desk, an opportunity, and you phone up somebody at Anthropic and say we should do a deal here, we should co invest and we can help.

So you see something on your desk, an opportunity, and you phone up somebody at Anthropic and say we should do a deal here, we should co invest and we can help.

Well, it's a little deeper than that.

Well, it's a little deeper than that.

It's really a collaborative initiative with them, where we've got a whole program built for entrepreneurs. So we've got quarterly media, we've got biannual demo days, we've got a lot of back and forth interaction between the two companies, and you know, really we expect a tremendous amount of the deal flow to come from them, things that they're interested in, that they see that they'd like to see kind of as lighthouse examples of AI. So there's a lot of alignment around basically kind of this first wave of AI has happened so quickly and been the biggest kind of technology wave and curve we've ever seen, but it's still a bit of the wild West, and developers are on their own and everybody's doing things a little bit differently and trying to figure it out.

It's really a collaborative initiative with them, where we've got a whole program built for entrepreneurs. So we've got quarterly media, we've got biannual demo days, we've got a lot of back and forth interaction between the two companies, and you know, really we expect a tremendous amount of the deal flow to come from them, things that they're interested in, that they see that they'd like to see kind of as lighthouse examples of AI. So there's a lot of alignment around basically kind of this first wave of AI has happened so quickly and been the biggest kind of technology wave and curve we've ever seen, but it's still a bit of the wild West, and developers are on their own and everybody's doing things a little bit differently and trying to figure it out.

There's an immature ecosystems.

There's an immature ecosystems.

The idea here is to really bring together the best developers, the best AI technology platform in Anthropic, and a leading venture firm like Menlo to really build community and push the boundaries together, to learn together, to mature that ecosystem, and to really think about some special areas that really haven't been conquered yet.

The idea here is to really bring together the best developers, the best AI technology platform in Anthropic, and a leading venture firm like Menlo to really build community and push the boundaries together, to learn together, to mature that ecosystem, and to really think about some special areas that really haven't been conquered yet.

So super excited about it.

So super excited about it.

I mean, Matt, this isn't kind of the first time you've done one of these innovative kind of partnerships. I think back of the ipund that you helped launch back in two thousand and eight that was about being collaborative with Apple defining apps applications on their operating system.

I mean, Matt, this isn't kind of the first time you've done one of these innovative kind of partnerships. I think back of the ipund that you helped launch back in two thousand and eight that was about being collaborative with Apple defining apps applications on their operating system.

Can you tell us a little.

Can you tell us a little.

Bit about how much skin in the game ultimately Anthropic will have or is it more about just bringing about Claude, the adoption of it, and well then perhaps funding a bit of use of their own applications.

Bit about how much skin in the game ultimately Anthropic will have or is it more about just bringing about Claude, the adoption of it, and well then perhaps funding a bit of use of their own applications.

Yeah, well it's it's Menlo's capital, but it's really Anthropics sponsorship, advice, mentoring, getting closer to these developers. So I think it's really a win win for everybody. Anthropic as a cohort of developers that a that will have recommended a number of them, but be there'll really be kind of involved in helping them if those developers are stuck. They'll be able to understand what kind of needs developers have and you know, and kind of really make sure that we've got very specific areas that we're both interested in seeing applications.

Yeah, well it's it's Menlo's capital, but it's really Anthropics sponsorship, advice, mentoring, getting closer to these developers. So I think it's really a win win for everybody. Anthropic as a cohort of developers that a that will have recommended a number of them, but be there'll really be kind of involved in helping them if those developers are stuck. They'll be able to understand what kind of needs developers have and you know, and kind of really make sure that we've got very specific areas that we're both interested in seeing applications.

Exist that we kind of help fund those.

Exist that we kind of help fund those.

And I think for entrepreneurs is again given it's a bit of the wild West, they now kind of know there's a place to come where you can get support from Anthropic. Every developer developing something should be looking at Nthropic because it's absolutely the best model right now and we have great confidence that it's also the best team and will continue to kind of pace that race. So Anthropics really trying to get closer to the developer community. That's what we do on a daily basis, and developers can really take advantage.

And I think for entrepreneurs is again given it's a bit of the wild West, they now kind of know there's a place to come where you can get support from Anthropic. Every developer developing something should be looking at Nthropic because it's absolutely the best model right now and we have great confidence that it's also the best team and will continue to kind of pace that race. So Anthropics really trying to get closer to the developer community. That's what we do on a daily basis, and developers can really take advantage.

Of it, MATT support or compute.

Of it, MATT support or compute.

There's a lot of discussion right now about venture firms who are you know, kind of advertising that they've built up their own cluster of h one hundreds.

There's a lot of discussion right now about venture firms who are you know, kind of advertising that they've built up their own cluster of h one hundreds.

I think Andresen is an example of.

I think Andresen is an example of.

That, right, but in reality, you know, it's probably through AWS, Andthropic has a great relationship with AWS GCP as well. You kind of market it that way where you say to potential portfolio companies, this is the support operationally we can give you through a compute lens.

That, right, but in reality, you know, it's probably through AWS, Andthropic has a great relationship with AWS GCP as well. You kind of market it that way where you say to potential portfolio companies, this is the support operationally we can give you through a compute lens.

Yeah, I mean, I.

Yeah, I mean, I.

Think this is more about creating a community of founders that can learn from each other and talk to each other about how they're solving certain problems, get advice from Anthropic on their roadmap, early access to certain things, and really just kind of more of almost like a batphone or a hotline to talk to them if they've got any issues. So I think the whole notion of building out a cluster and capability of capacity for them is not really part of this program, no order, I think it's necessary. I mean, they get free credits and things like that, so there will be capacity on Anthropic. But I was actually with Jensen last night and I have high confidence that Nvidia will continue to solve the capacity problem and the big cloud providers like Anthropics partners, Aws and Google will provide that need over the time. So you might have a little bit of a short term capacity constraint, but I'm not too worried about it over the long haul.

Think this is more about creating a community of founders that can learn from each other and talk to each other about how they're solving certain problems, get advice from Anthropic on their roadmap, early access to certain things, and really just kind of more of almost like a batphone or a hotline to talk to them if they've got any issues. So I think the whole notion of building out a cluster and capability of capacity for them is not really part of this program, no order, I think it's necessary. I mean, they get free credits and things like that, so there will be capacity on Anthropic. But I was actually with Jensen last night and I have high confidence that Nvidia will continue to solve the capacity problem and the big cloud providers like Anthropics partners, Aws and Google will provide that need over the time. So you might have a little bit of a short term capacity constraint, but I'm not too worried about it over the long haul.

Matt, I'm a founder wanting to get more use out of Anthropic, and I've got an idea what problems you want to see solved, because there are a lot of areas that allocation and well value can be attributed to in the supply chain right now of AI.

Matt, I'm a founder wanting to get more use out of Anthropic, and I've got an idea what problems you want to see solved, because there are a lot of areas that allocation and well value can be attributed to in the supply chain right now of AI.

Yeah, I mean, I think there's certain areas that you know, we've called out.

Yeah, I mean, I think there's certain areas that you know, we've called out.

It's a big interest for Anthropic two around things like digital health. You know how messed up that system is and all the capabilities to automate do better diagnosis, accelerate cure programs, things like that. The legal vertical has already been one of the first movers here. I think helping people optimize trust in safety, because trust in safety can be a real barrier to adoption if people feel like the models will hallucinate or you know, produce results that aren't consistent with their brand message. I think there's a lot of infrastructure. A model is one part of it, but really for any developer ecosystem to thrive, you need a whole developer experience. So there's a bunch of things like that that we'll be working on together that will be really exciting.

It's a big interest for Anthropic two around things like digital health. You know how messed up that system is and all the capabilities to automate do better diagnosis, accelerate cure programs, things like that. The legal vertical has already been one of the first movers here. I think helping people optimize trust in safety, because trust in safety can be a real barrier to adoption if people feel like the models will hallucinate or you know, produce results that aren't consistent with their brand message. I think there's a lot of infrastructure. A model is one part of it, but really for any developer ecosystem to thrive, you need a whole developer experience. So there's a bunch of things like that that we'll be working on together that will be really exciting.

Top story this week on our show has been jd Vance. Probably you were quoted in a Bloomberg story weighing in as part of a very broad Silicon Valley reaction. I just wondered if you'd extrapolate a bit more and explain your view on a former Silicon Valley name potentially going to the White House in November.

Top story this week on our show has been jd Vance. Probably you were quoted in a Bloomberg story weighing in as part of a very broad Silicon Valley reaction. I just wondered if you'd extrapolate a bit more and explain your view on a former Silicon Valley name potentially going to the White House in November.

Yeah.

Yeah.

My real point was, irrespective of party, I think the more that we have people in the White House or around Washington who really understand tech, it's the biggest driver of innovation and job growth in our economy, and we need people who understand it. And having somebody who's been as part of a fund who's seen the way innovation works back company has been on a board things like that. I think it's kind of a unique experience and opportunity that can be helpful. You know, we have some resistance right now around the M and a market and antitrust that's been blocking some important deals.

My real point was, irrespective of party, I think the more that we have people in the White House or around Washington who really understand tech, it's the biggest driver of innovation and job growth in our economy, and we need people who understand it. And having somebody who's been as part of a fund who's seen the way innovation works back company has been on a board things like that. I think it's kind of a unique experience and opportunity that can be helpful. You know, we have some resistance right now around the M and a market and antitrust that's been blocking some important deals.

And the way that the venture economy can.

And the way that the venture economy can.

Really flourish is where strategic buyers can purchased the companies that may not be able to get all the way to the IPO on their own. We have other exopaths like p firms and things like that, but really and obviously IPOs, but it's super important that there's a vibrant M and A environment and I think anyone who's leading in Washington should be very conscious of that to enhance and continue this job growth that's spent an amazing growth into the for the firm, the country.

Really flourish is where strategic buyers can purchased the companies that may not be able to get all the way to the IPO on their own. We have other exopaths like p firms and things like that, but really and obviously IPOs, but it's super important that there's a vibrant M and A environment and I think anyone who's leading in Washington should be very conscious of that to enhance and continue this job growth that's spent an amazing growth into the for the firm, the country.

Matt, thanks for coming on talking anthology fund and a little bit of politics of Meno ventues. We appreciate it.

Matt, thanks for coming on talking anthology fund and a little bit of politics of Meno ventues. We appreciate it.

The good, the bad, and the ugly.

The good, the bad, and the ugly.

That could be one way summarising the last twenty four hours over at Amazon, because Prime Day is getting off to a fast start, sales jumping look twelve thirteen percent within the first six hours of the event yesterday, but you fast forward to Tuesday night, the company's advertising portal it crashes, leaving brands in the dark, flung blind with their out spending for more than two hours. Felt a bit of a soad and sour are ending to the first day of Prime Day, certainly weighing on the shares this morning. Let's bring in Spencer Sofa, who has the inside track. You watched as people were left baffled and frustrated.